Renewable energy sources are wasted due to network bottleneck

The world’s power grid infrastructure has not kept up with the significant growth in renewable energy, according to an article from international media outlet Nikkei. The world increased renewable energy capacity by an impressive 64 percent last year, reports Nikkei journalist Misa Hama. But many projects are off the grid, meaning much of the energy generated — the equivalent of 480 nuclear reactors, to be exact — is wasted.

In the United States, wind and solar power are the most wasted, with “off-grid renewable capacity expected to reach 1,500 GW of output in 2023, a ninefold increase since 2015, according to Lawrence Berkeley National Laboratory in California,” the article notes. A source interviewed for the article attributes the surge in part to the Inflation Reduction Act, which promotes renewable energy through tax incentives.

A lack of grid capacity could stifle the transition from fossil fuels to renewable and clean energy sources. Fortunately, as Hama reports, “Recognizing this risk, some governments are taking steps to address the problem. In early August, the U.S. announced an additional $2.2 billion investment to modernize its power grids,” and other governments around the world are following suit.